Behring: Popeyes sales tripled after seven years under RBI ownership
Alex Behring · Classic Deal - Burger King by 3G Capital (EP.384) · May 6, 2024 · at 58:09
Alex Behring, co-managing partner at 3G Capital and founding chairman of Restaurant Brands International, explains the commercial growth of Popeyes since its 2017 acquisition.
0:00 / 0:16exact quote · 16.7s
720p mp4 · rendered on demand · StarZero watermark
“Then you fast forward to today on a company three times as big in sales than what we bought. And again, a function of fast international and domestic expansion or restaurant count and basically launching A boneless product, which is a chicken sandwich.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Alex Behring
Behring: Most 3G Value Creation Came From Growth, Not Zero-Based Budgeting
“In spite of all the publicity the zero-based budget gets, the portion of that value creation that is directly associated with the efficiencies and therefore with the zero-based budget is small. I mean, frankly, the majority of that growth came from, again, the…”
Behring: 3G Capital Generated 28x Return and 30% IRR on RBI
“We had this big returns in companies like RBI and where I think we made 28 times the original billion plus capital we put in, and we had a 30% IRR in 14 years and all, and things like that”
Behring: 3G Capital uses single-deal funds where partners are largest investors
“If you were to compare and contrast the approach at Three G Capital with a more traditional private equity, Approach. I think the three main points I would make is one, we are the largest investors. We, the partners and affiliated entities are the largest inve…”
Behring: Kraft investment broke even, validating 3G's capital preservation floor
“Then we had the Kraft investment, which was merged with the Heinz investment, but it was a totally separate vehicle. That investment, we just basically got our money back. Wasn't a successful investment, but he validated a fundamental premise of ours, which is…”
Behring: 3G's model places a partner directly as CEO of acquired companies
“To the extent that the partners were able to acquire a good business, one of the partners would take a CEO role in that business.”
Behring: Burger King's business was significantly smaller than its brand
“The business of Burger King was significantly smaller than the brand. I mean, it turned out that I wasn't alone. So the brand was a much bigger thing than the business, which is a great opportunity, meaning of course there is growth of the brand, but growing t…”